Determine the store''s cost of goods sold for august

Assignment Help Accounting Basics

Reference no: EM13526000

Assume a Watercrest Sports store outlet store began August 2012 with 40 pairs of running shoes that cost the store $36 each. The sale price of these shoes was $61. During August, the store completed these inventory transactions.

Inventory Transactions
units unit cost unit sale price
Aug 2 Sale 13 $ 36 $ 61
9 Purchase 85 37
13 Sale 27 36 61
18 Sale 11 37 63
22 Sale 30 37 63
29 Sale 20 38

Requirements:
1. The preceding data are taken from the store's perpetual records. Which cost method does the store use? (a) FIFO (b). LIFO
(C). Weighted-average cost. Explain how you arrived at your answer.
2.Determine the store's cost of goods sold for August. Also compute gross profit for August.
3.What is the cost of the store's August 31 inventory of running shoes?

Reference no: EM13526000

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